Limited progress by the finance sector on deforestation

The latest assessment data shows that a few financial institutions are advancing on deforestation policies, implementation and reporting. Most – including the largest asset managers – are still failing to act.

Oxford, United Kingdom (16 June 2026) – New Forest 500 data published today by Global Canopy reveals limited progress on deforestation by the finance sector. 

• Of the 150 financial institutions most exposed to deforestation, 59% have no deforestation policies for the seven high-risk commodities identified by Forest 500. This includes three of the world’s largest asset managers: BlackRock, State Street and Vanguard. 
• A narrow handful of financial institutions showed a range of improvements, from publishing details of policies to increased reporting on the outcome of risk assessments and engagement activities. Their progress demonstrates that action is feasible.  

Since 2014, Global Canopy has annually assessed and ranked the 150 financial institutions that provide the most financing to the 500 companies with the greatest influence on global deforestation through the production, processing and sourcing of nine forest risk commodities.  

Most of the finance sector stagnates on action on forest loss

• In 2025, 23 financial institutions (15%) are categorised as persistent laggards. They have been included in every annual assessment since 2014 and have consistently failed to publish a public deforestation policy since that date. 
• Fidelity International, HSBC, UBS and US Bancorp all dropped a deforestation policy for one commodity. Banco do Brasil was not scored for its soy policy, which it published in 2014 and has not updated since then. 
• Only 39% of the most exposed financial institutions recognise forest loss as a business risk. 

Progress by a few demonstrates what is possible

• In 2025, Crédit Agricole, NatWest, Schroders, Standard Chartered and Yayasan Pelaburan Bumiputra added policies to cover all seven high-risk commodities, bringing the total number of financial institutions that have comprehensive coverage of commodities to 10.
• In 2025, 10 financial institutions published the outcomes of risk assessments – up from just two in 2024. Among those that started to publish in 2025 are BNDES, Fidelity International and Lloyds Banking Group. 
• During the assessment period, 12 financial institutions reported on indicators related to policies, compliance and engagement – up from just three in 2024.    

Notably, two financial institutions saw significant increases in their scores and achieved scores over 50%. Legal & General rose from 56% to 71%, largely due to improved reporting and more robust human right policies. Schroders rose from 31% to 51%, reflecting an expansion in its policies to include the cocoa, coffee and rubber sectors.  

Pei Chi Wong, Strategic Finance Engagement Lead at Global Canopy, said: “The overall picture is of the sector ignoring its links to forest loss, despite the growing threat of deadly climate events to both human life and financial stability. The clear progress made by a few shows that this is a choice, as action is possible.”

Tackling deforestation is possible. There are open access tools, frameworks and guidelines designed to enable financial institutions to screen portfolios for deforestation risks and to engage with the most at-risk companies. But the slow pace of progress, concentrated in a small group of leaders, shows the limits of voluntary action and the importance of policy and regulatory leadership. In parallel with implementing supply chain regulations, regulators need to introduce mandatory due diligence for financial institutions to end the financing of deforestation.

Niki Mardas, Executive Director at Global Canopy, said: “Tackling deforestation is an area where the risks to the economy and the risks to all of us are well understood, where there is near universal political consensus on the need for action, and where the tools and data are in place to enable really rapid finance sector progress. Yet all we see is a slow and uneven creep forward – allowing violent harms to continue, increasing risks and pushing far greater costs into the future.” 

Read the full report here. 

¹ This financing is through shareholdings, loans and underwritings or bondholdings that had not reached maturity on 7 November 2024 and for any shareholdings held in publicly listed Forest 500 companies on 7 November 2024.

² Financial institutions are assessed for cattle products (beef and leather), coffee, cocoa, palm oil, rubber, soy and timber products (pulp and paper and timber). These seven commodity groupings cover the same scope as the nine commodities used in the Forest 500 company assessments.

Contact 

For more information and to arrange an interview, contact Rue Swabey: [email protected] 

Forest 500 can provide more detailed financial institution information on request. 

About Global Canopy 

Global Canopy is a data-driven not for profit that targets the market forces destroying nature by promoting transparency and accountability. Global Canopy provides innovative open-access data, metrics and insights to leading companies, financial institutions, governments and campaigning organisations worldwide, to help them make better decisions about nature, forests and people. 

About Forest 500 

Forest 500 identifies the companies and financial institutions with the greatest exposure to deforestation risk, and annually assesses them on the strength and implementation of their commitments on deforestation, conversion of natural ecosystems and associated human rights. The 12th annual Forest 500 assessment of financial institutions took place between 8 December 2025 and 23 February 2026.